FINANCIAL POLICIES
C. Capital Improvement Program (CIP) Budget In conjunction with the biennial budget process, the City develops a five-year CIP. CIP projects are generally valued at over $50,000 and have an estimated useful life in excess of two years. CIP includes the following categories: o Streets and Mobility Improvements o Facility Improvements o Landscape Improvements o Great Park Improvements The CIP budget is driven by the Cit y’s goal to appropriately maintain and care for the City’s infrastructure, in order to protect the City’s capital investment and to minimize future maintenance and replacement costs. The CIP budget includes sources of funds in compliance with the Infrastructure Funding Policy, previously appropriated funding as well as future five-year funding needs, and estimated future operating costs or savings associated with each capital project. Similar to the operating budget, funding for the first two years of the CIP budget is approved during the biennial budget process. D. Balanced Budget The City Manager presents, and the City Council adopts, a balanced biennial budget, containing estimated revenues equal to appropriated expenditures. The budget is balanced at the individual fund level. The estimated revenue sources must be sufficient to cover proposed uses. Ongoing operations are funded by recurring revenues. City policies on reserve requirements for specific funds are adhered to in the budget. If shortfalls are projected after the budget adoption, during quarterly financial reviews, the City Manager will present a plan to address such shortfalls with sustainable measures in order to achieve a balanced budget by fiscal year-end. Non-recurring revenues or one-time funding may be used to balance the budget during economic downturns, or as a result of unforeseen events. E. General Fund Contingency Reserves The City shall seek to maintain a General Fund Contingency Reserve at a level between 20 to 25 percent of the General Fund adopted appropriations. A 25 percent reserve level is desired, but will only be achieved when practical. The Contingency Reserve may be used to help mitigate the effects of unanticipated situations such as natural disasters and severe, unforeseen events. During the fiscal year, the Contingency Reserve may also be used to meet the City’s funds liquidity needs. The City Council may authorize the use of reserves to address an unforeseen emergency, or to offset revenue decreases due to a significant economic downturn in order to maintain strategic essential services. At the time this authorization is given, a plan shall also be approved to replenish the reserves within three fiscal years.
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FY 2023-25 Adopted Budget
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